The Managing Director of Islami Bank Bangladesh PLC, Md. Omar Faruk Khan, has been sent on a 49-day leave -- double the 24 days he had applied for -- sparking widespread speculation within the Shariah-based bank.
The decision was taken at a meeting of the bank's board of directors held at its head office in Dhaka on Sunday, with its Chairman Prof M Zubaidur Rahman in the chair.
At the meeting, the board advised Mr Khan to proceed on leave starting today (Monday) through May 31, according to sources familiar with the proceedings.
In his absence, Additional Managing Director Md Altaf Hossain has been assigned to serve as acting managing director.
The sudden extension of the MD's leave has created an atmosphere of uncertainty within the bank, as no official explanation has been provided for the board's decision.
The chairman and the managing director could not be reached for comment despite repeated attempts.
The circumstances surrounding the extended leave remain unclear, raising questions about internal governance and external influence on one of the country's leading Islamic banks, according to industry insiders.
Mr Khan, who officially assumed the role of Managing Director on August 3, 2025, began his banking career with Islami Bank in 1986. He later served as Additional Managing Director at NRB Bank after being forced to resign from Islami Bank during the previous administration.
The bank had earlier removed its former managing director Mohammed Monirul Moula in May last year over allegations of irregularities and fraud, after which Mr. Khan served as acting managing director before his formal appointment.
The leadership development comes amid regulatory scrutiny. Last month, Bangladesh Bank removed Md. Abdul Jalil from the bank's board and appointed SM Abdul Hamid as his replacement.
The central bank had earlier reconstituted the board of Islami Bank following the political transition in 2024.
Once managed by a board aligned with a particular political group, the bank has undergone significant changes in ownership and control over the years, including a takeover by the S Alam Group in 2017 with Bangladesh Bank's support, the insiders said.
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